LANSING – House Democrats today passed a package of bills that will help ease the pain at the pump for Michigan motorists, spur investment in renewable Fuels of the Future, including ethanol and biodiesel, and reduce Michigan's dependence on foreign oil.
"As gas prices continue skyrocket, this is the kind of relief our working families need," said House Democratic Leader Dianne Byrum (D-Onondaga). "Investing in ethanol and biodiesel puts Michigan on the road to cheaper fuel prices and independence from foreign oil. Developing these renewable fuels also will boost our agricultural economy. This is a change in the right direction for Michigan."
The package will:
- Create incentives for gas station owners to install equipment for ethanol and biodiesel. Gas station owners will be eligible for grants ranging from up to $2,000 to update a current pumping system to up to $15,000 to install a new system.
- Create an alternative fuel tax of 12 cents a gallon for gasoline that is at least 70 percent ethanol and diesel that is at least 5 percent biodiesel, down from 19 cents a gallon.
- Require that the state install fuel pumps that dispense biodiesel and E85.
- Create a Renewable Fuels Commission to investigate and recommend strategies for encouraging the use of alternative fuels and educating residents on their benefits.
- Establish new renaissance zones for renewable energy facilities.
Biodiesel is made from soybeans and ethanol is made from corn; both are major agricultural commodities in Michigan. Ethanol costs an average of 70 to 80 cents less than regular gasoline, which will help reduce gas prices for Michigan motorists. In addition, increased investment in alternative fuels will help create jobs as new facilities are built across the state. In April, Governor Jennifer M. Granholm announced that 20 new E85 stations will be established across the state.
"Michigan already is moving in the right direction when it comes to alternative fuels, and today we got moving a little faster," said State Representative John Espinoza (D-Croswell). "Our alternative fuels plan will help our motorists and farmers. This is a positive change for Michigan that will help keep us going on the right track."